IKEA first began in 1930s when Ingvar Kamprad the founder had an idea to create innovative products related to home furnishing. The name ‘IKEA’ originates from Sweden standing for co-founder Ingvar Kamprad, his family farm - Elmtaryd and Agunnaryd, the village that Ingvar grew up in. It is on the family farm where Ingvar opened the first ever warehouse, in a small little shed in 1948.
His concept was to design innovative and fashionable products by using cheap resources to keep cost low. This is where Ingvar applied what he had learnt in Smaland. However while cost-cutting and creating much lower prices compared to their competitors, Ingvar kept in mind not to affect the quality of the products. Reducing costs at any given opportunity and saving where possible was the initial concept but achieving high quality furnishing to ensure people live a better life.
Now IKEA is a global trademark that represents home furnishing with over 300 stores in more than 35 countries.
Marketing entry strategy Kiefer and Steve (2009), states IKEA’s success as being nothing short of a global phenomenon. Giving IKEA such a high rating due to their success, it must suggest that they have been very wise in planning their market strategies to enter different global markets. In fact they are armed with a wide range of international experience in Europe, North America, and most recent Far East Asia. They see Far East Asia as an emerging market, which counts
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